Challenge the future Delft University of Technology Housing policy: the Dutch case Coping with crisis Marja Elsinga, OTB Research Institute for the Built Environment / TU Delft

2 Social and affordable housing, the Dutch model | Home ownership Social housing

3 Social and affordable housing, the Dutch model | Development of housing tenures in the Netherlands

4 Social and affordable housing, the Dutch model | Encourage home ownership: encourage debt Mortgage interest deduction: 100% deductable at marginal rate 14 billion a year Mortgage guarantee (up to loans of 350), 80% of current market

5 Social and affordable housing, the Dutch model | House prices nominal Netherlands (* €1.000), NVM

6 Social and affordable housing, the Dutch model | Number of new dwellings sold, quarterly, Monitor nieuwe woningen, 2012

7 Social and affordable housing, the Dutch model | Consumer confidence, vereniging eigen huis, 2012

8 Social and affordable housing, the Dutch model | Response to the crisis Early response Mortgage interest deduction: Extend period of double deduction from 2 to 3 years Mortgage guarantee: Increase maximum loan from 265 to Euro Later response last week Right to buy for social rental housing: 75% of social stock for sale Reform mortgage interest deduction: make it less generous, proposal of last week, majority in parliament

9 Social and affordable housing, the Dutch model | Home ownership Social housing

10 Social and affordable housing, the Dutch model | August 27, housing policy, Osaka Source: CECODHAS European Social Housing Observatory (2008)

11 Social and affordable housing, the Dutch model | Development of housing tenures in the Netherlands

12 Social and affordable housing, the Dutch model | The Dutch model of social housing The Dutch model: Social (not public!!) landlords that provide housing at below market rents and allocate to need Key features: No subsidies Broad target group Access to loans Tied to government

13 Social and affordable housing, the Dutch model | Social Housing Governance Housing Act BBSH (Social Rented Sector Management Order): performance fields Performance agreements on the local level Two key institutions: Social Fund (CFV) Guarantee Fund (WSW)

14 Social and affordable housing, the Dutch model | Mergers lead to fewer but larger housing associations (HAs) average size number of HAs

15 Social and affordable housing, the Dutch model | Rent income Housing sale revenues New affordable housing Community investments Revolving Fund Principle Housing refurbishment

16 Social and affordable housing, the Dutch model | Current issues National government More rent increase, new tax for all land lords, 2013 (760 million per year) to finance housing allowance EU competition policy: end of the broad social model Survey by parliament Housing associations Less investment Intermediate tenures Scandal of Vestia

17 Social and affordable housing, the Dutch model | System changes Forced by financial markets: lower LTV’s and thus less access to home ownership Reconsidering social housing, what is the key aim: Housing the most vulnerable Urban renewal investment Housing a broad group Safeguard affordability by housing allowance